JPMorgan to dish out more than $2B for Madoff fraud

by WP07 Jan 2014

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JPMorgan to dish out more than $2B for Madoff fraud

JPMorgan Chase & Co. has fessed up again accepting more than $2 billion in additional charges for failing to report Bernie Madoff’s suspicious behaviour during his two-decade reign as a ‘loyal’ customer.

The bank has admitted to failing to alert bank regulators about Madoff’s activities, despite various divisions identifying inconsistencies with his accounts between the late 1990s and 2008. Madoff held an account with JPMorgan from 1986 onward.

Madoff’s accounts received about $150 billion in deposits and transfers. The majority of the funds belonged to thousands of investors, whose money was never used to buy securities, as promised. In August 2008, Madoff’s account reached $5.6 billion. By December, at the time of Madoff’s arrest, the account was down $234 million. No suspicious reports were ever filed by JPMorgan until after his arrest. (Continued on Page 2)